Johnsen Company earned service revenue on account of $300,000 and had cash collections of $130,000 for the year. During the year, uncollectible accounts receivable of $2,000 were written off. At December 31, an aging-of-accounts receivable schedule indicated that Johnsen Company will not collect $10,000 of accounts receivable. There was a credit balance of $2,100 in the Allowance for Uncollectible Accounts at the beginning of the year.
Required:
Journalize the entries to record (1) service revenue, (2) cash collections, (3)write-off of the uncollectible receivables and (4) the adjusting entry to record Uncollectible-Account Expense. Ignore Cost of Goods Sold. Explanations are not required.
Journal entry :
Date | General journal | debit | credit |
Account receivable | 300000 | ||
Sales revenue | 300000 | ||
Cash | 130000 | ||
Account receivable | 130000 | ||
Allowance for doubtful accounts | 2000 | ||
Account receivable | 2000 | ||
Bad debt expense (10000-2100) | 7900 | ||
Allowance for doubtful accounts | 7900 | ||
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